As oil prices drops below $80/barrel, Canada's oil export driven economy takes a huge hit.
CANADA - The loonie had the biggest one-day drop on record today, falling nearly four cents against the American dollar at one point amid tremendous financial upheaval around the world.
Even after recovering from its lowest point, the loonie was down 3.08 cents to 84.20 cents US early in the afternoon.
Earlier, the dollar was down as much as 3.87 cents at 83.41 cents, according to the Bank of Montreal's currency desk.
Canada's dollar has now fallen more than a quarter since hitting an all-time peak of 110.3 cents US last November after a rapid three-month rise.
It's nearly three years since Canada's dollar was below 84 cents US, on Nov. 21, 2005.
According to the Bank of Canada's exchange rate website, the dollar hasn't fallen more than three cents in one day since June 21, 1961, when it lost 3.38 cents US.
The fall of the loonie reflects the impact of lower commodity prices, especially oil, along with weak economies around the world and concern that even Canada's sturdy banks are being effected by a global credit crunch.
An economic note from Scotiabank said the loonie is "showing no signs of ending its losing streak against the U.S. dollar."
The loonie is also being sideswiped by rising demand for the U.S. dollar as the United States government tries to borrow heavily in global money markets to finance its $700-billion bailout of banks.
The loonie's plunge yesterday and today came despite a report from Statistics Canada that the country generated a record number of new jobs last month and more support for the financial system from Ottawa.
Finance Minister Jim Flaherty says the government won't allow Canada to be dragged down by instability from outside the country and promises to buy as much as $25 billion worth of debts from Canadian financial institutions.
If the loonie stays at current levels it will make imports of everything from Florida fruit to Boeing jetliners more expensive to Canadians and raise the costs of winter vacations in the United States.
It will also provide some relief to hard-pressed Canadian manufacturers, squeezed for the last two years as the strong currency made Canadian lumber, newsprint, machinery, furniture and other products more costly in the United States market.
However, the volatile trading in the currency makes it difficult for companies and consumers to adapt to such rapid changes.
Past Headlines regarding the Canadian Loonie:
Canadian Loonie on a Roll - Uphill!
Loonie Expected to Soar in 2008
Par in sight for Canadian Dollar
Canadian Dollar Soars Above Par
The Canadian Dollar and Exports
American, Canadian, Toronto & International News Commentary: Spreading Freedom in the Face of Tyranny
October 10, 2008
Subscribe to:
Post Comments (Atom)
Affordable Website Design & SEO
|
Featured Posts
The Sarcasm Symbol
Ever had some confusion online or with your cellphone when someone fails to catch the sarcasm? Well now with the SarcMark you can ge... |
|
Behold, the Scorpion Hydrogen Supercar
CARS - To the right is the future of supercars... it is a hydrogen supercar called the Scorpion. The Scorpion from Ronn Motors in Texas is t... |
|
Documents show Stephen Harper misusing public funds
CANADA - According to 950+ pages of documents obtained by the Canadian Press under the Access to Information Act the Privy Coun... |
|
Pink's Rosie the Riveter
ENTERTAINMENT - What I like about this video is how it meshes different social movements like feminism, veganism, anti-capitalism... |
|
California's Dustbowl
ENVIRONMENT - The photo on the right is a farm in California that has been put up for sale. Its just one of thousands of farms that are n... |
|
Is Steampunk the New Goth???
GOTHIC - Watch out what you see on the subway late at night because while in 2001 you might have seen some pretty freakish goths, by 20... |
|
Do you have enough Ice Water in your diet?
HEALTH - A Calorie (large C) is a measurement of the amount of energy needed to raise the temperature of a litre of water (1 kg's worth) ... |
|
North Korean timeline towards Inevitable War
POLITICS - The following is timeline of events that have occurred on the Korean Peninsula. 1945 - Japan surrenders to the United States a... |
|
Judgment Day is Tomorrow, so sayeth Cult
RELIGION - According to a cult based in California, Judgement Day is tomorrow (May 21st 2011) and Jesus Christ will return to the Earth a... |
|
Sex in Space Forbidden
SEX/TECHNOLOGY - Sex in outer space is a big no-no according to NASA. Not for professional astronauts at least, but the growing numb... |
Popular Posts / Last 30 Days
-
Visit amazon.com/author/moffat to get free short stories and huge discounts on fantasy books by Charles Moffat. Sale ends on October 20th.
-
CANADA - One of Canada's elite commando units, the JTF2 commandos, have returned home to Canada after serving in Afghanistan for almos...
-
Interracial Relationships is a big no-no for some people, however there's a lot of information out there showing that such relationship...
-
CANADA / ENVIRONMENT - Companies in Canada are cutting their emissions even though the government of Canada is still sitting on the fence w...
-
CANADA - Seriously... who was going to vote for a bald guy named Rocco Rossi??? According to polls 4% of Torontonians were thinking of voti...
-
Peasant Magazine is seeking submissions for Issue #2. Specifically it is looking for fantasy, historical fantasy, historical fiction an...
-
CARS - Nobody ever steals a pink car. According to a Dutch study which compared the colour of cars being stolen, pink is the safest colour ...
-
I just finished watching Sicko (the 2007 documentary by Michael Moore about American health care, or lack thereof) and it is way better tha...
-
And the similarities don't stop there. Hitler and Trump have a lot more in common. The context in which Adolf Hitler was elected is...
-
CANADA - Interesting Fact: Stephen Harper 's Conservative government in Canada has only shown up to work for 14 days between June 1st ...
No comments:
Post a Comment
Comments containing links will be marked as spam and not approved. We moderate every comment. If you want to advertise on this blog it is $30 per link.